News and Articles

Pensions For The Self-Employed

By | Pensions | No Comments

If you are self-employed, saving into a pension can be a harder habit to develop as you will not qualify for an auto enrolment pension, there are no employer contributions and irregular income patterns can make saving for the future more difficult.

Although you may be entitled to the state pension, it is unlikely to provide enough income to live a comfortable retirement. The full new state pension has increased to £155.65 per week, but the amount you will receive will depend on your National Insurance record and the number of qualifying years.

Which is why planning for your retirement is crucial to provide you with financial security during your retirement. At Castlegate, our experienced financial advisers can advise on all aspects of pension planning and provide pension advice in Lincolnshire and across the East Midlands.

Start Saving For Your Pension Early

The earlier you start saving into a private pension plan the better as it gives you more time to contribute to your fund, benefit from tax relief and more time for growth in your funds value providing you with greater financial security in your retirement.

As an independent financial adviser, we offer pension advice in Lincolnshire and across the East Midlands. We work with our clients to ensure that they have the best pension plan in place that meets their needs, track its progress and is regularly reviewed to ensure that changes in personal circumstances have been considered.

There are a range of different types of pensions available to the self-employed such as stakeholder pensions and self invested personal pensions (SIPPs). The type of pension best suited to you will depend on your circumstances which is why we also recommend seeking independent financial advice when it comes to pension planning.

Stakeholder Pension Schemes

A stakeholder pension is a simple type of personal pension plan designed to provide an optional lump sum and income in retirement. Stakeholder pensions are available to any United Kingdom resident under the age of 75, regardless of whether you already have a workplace pension or if you’re self-employed and don’t have a workplace pension.

When you contribute to a stakeholder pension, your money is invested by the pension provider (usually an insurance company) to build up a pension pot over a number of years.

Self Invested Personal Pension (SIPP)

SIPPs are designed for investors who want maximum control over their pension. As such, a SIPP requires active involvement but provides the maximum flexibility.

Unlike a standard personal pension, a SIPP holder has a much wider choice of assets to invest in, each of which can be selected to meet the individual’s personal circumstances and requirements, including UK and overseas equities, commercial property and investment trusts.

At Castlegate, a firm of Chartered Financial Planners, we offer independent pension advice in Lincolnshire and across the East Midlands, if you are looking for pension advice in Lincolnshire or the surrounding areas, please do not hesitate to get in touch to talk about the most appropriate form of pension planning for your personal circumstances.

Small Self Administered Pensions Schemes (SSAS)

Popular with Directors of companies this type of scheme allows not only the purchase of commercial property, from which they can work from, but also the ability to loan money at competitive rates of interest to their own company and indeed buy shares of the same. In addition to providing independent financial advice, Castlegate offers pension administration services, setting it apart from other local financial advisers.

Auto Enrolment

If you employ even one person you are required to meet your obligation to provide a workplace pension. Castlegate has a specialist adviser well versed in the requirements of auto enrolment.

Leave a Reply